Regulatory Action from Austrian FMA
The Austrian Financial Market Authority (FMA) recently issued an investor warning concerning CELESTIAL TRADING LTD, citing unauthorized brokerage operations through the platform TradoVest.com. The firm reportedly does not possess the necessary regulatory license to offer such services in Austria. Despite this, CELESTIAL TRADING LTD appears unfazed, as it has been the subject of multiple regulatory alerts in the past and has consistently failed to comply.
Ongoing Operations Despite Repeated Warnings
In addition to TradoVest, CELESTIAL TRADING LTD is linked to the trading website Option888.com, which has also attracted scrutiny. Both the Austrian FMA and Germany’s BaFin have previously warned investors about this site and issued demands to cease unlicensed operations.
Ties to VELTYCO GROUP PLC and Past Operators
Until early 2018, Option888 was primarily focused on binary options trading. The platform operated within the corporate orbit of the UK-listed VELTYCO GROUP PLC, founded by German businessman Uwe LENHOFF, in association with ALTAIR ENTERTAINMENT N.V. Prior to CELESTIAL TRADING LTD taking control, the platform was managed by CAPITAL FORCE LTD and ALTAIR ENTERTAINMENT. Payment processing was reportedly conducted through another affiliated company, PAYIFIC LTD.
In December 2016, the Italian regulator CONSOB issued a warning against both CAPITAL FORCE LTD and PAYIFIC LTD. These notices were disregarded. However, a turning point came on March 23, 2018, when BaFin formally ordered CAPITAL FORCE LTD—identified as operating under the Option888 name—to immediately cease its unauthorized financial services in Germany:
“BaFin has instructed Capital Force Ltd—commonly associated with Option888 and headquartered in Apia, Samoa—to halt all unauthorized financial business activities with immediate effect.”
Operational Restructuring Post-BaFin Action
Following BaFin’s enforcement, CELESTIAL TRADING LTD replaced the original operators of the Option888.com website. The same CELESTIAL TRADING LTD is now under investigation for its role in operating TradoVest without authorization.
Legacy of the Binary Options Industry
Websites such as Option888 and TradoVest are remnants of the once-thriving binary options sector. In its peak years, this industry comprised hundreds of active websites and processed between $5 billion and $10 billion annually in investor funds. However, regulators in Israel, the European Union, and other jurisdictions have since outlawed or severely restricted binary options due to widespread fraud.
Many of the operators from the binary options era have now pivoted to new sectors, including CFDs, forex, and cryptocurrencies. Yet, despite repeated warnings and regulatory sanctions, many of these companies continue to operate in violation of financial laws.